5 most popular Vanguard ASX ETFs among Aussie investors in 2025

Aussie investors are interested in diversified local and international shares, as well as bonds, this year.

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Key points

  • Vanguard's top-performing ETF in terms of cash inflow this year is the Vanguard Australian Shares Index ETF, attracting $2,536 million, as it tracks the ASX 300 Index, offering exposure to large and small-cap Australian companies. 
  • The Vanguard MSCI Index International Shares ETF follows, bringing in $1,882 million, providing broad geographical diversification primarily in large-cap US shares, while the Vanguard Global Aggregate Bond Index (Hedged) ETF appeals to investors seeking income-generating global bonds, attracting $1,499 million.
  • Other popular Vanguard ETFs include the currency-hedged Vanguard MSCI Index International Shares ETF with $1,136 million in cash flows, and the high-dividend-oriented Vanguard Australian Shares High Yield ETF, which brought in $1,116 million, offering a focus on significant income with solid long-term capital gains.

ASX exchange-traded fund (ETF) provider Vanguard has revealed its five most bought ETFs over the first three quarters of CY25.

Vanguard said Aussie investors have ploughed $2,536 million into the Vanguard Australian Shares Index ETF (ASX: VAS) this year.

VAS is the largest ASX ETF on the market with 22,463.36 million in funds under management as of 30 September, according to ASX data.

Vanguard said Australians invested a record $36.8 billion into ASX ETFs over the first three quarters of CY25.

This is more than was invested over the entirety of 2024.

Cash inflows into Vanguard ETFs exceeded $11.9 billion over the first three quarters, giving the provider a 32% share of new investment.

Let's check out the five most popular Vanguard ETFs of the year so far.

1. Vanguard Australian Shares Index ETF (ASX: VAS)

The ASX VAS attracted $2,536 million in cash flow over the first three quarters of 2025.

The VAS ETF seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO), which represents the 300 largest companies by market capitalisation.

This includes ASX blue-chip shares like Commonwealth Bank of Australia Ltd (ASX: CBA) and BHP Group Ltd (ASX: BHP) at the top of the index, and small-caps like Polynovo Ltd (ASX: PNV) and real estate investment trust (REIT) Dexus Industria REIT (ASX: DXI) at the bottom.

2. Vanguard MSCI Index International Shares ETF (ASX: VGS)

The ASX VGS brought in $1,882 million in new investment this year.

The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

ASX VGS gives investors broad geographical diversification through its exposure to about 1,300 international shares across 23 nations.

US shares dominate the portfolio at 74%, followed by Japan 6%, Canada 3%, and the UK 3%.

The ASX VGS is focused on large-cap shares at 81% of the portfolio. The ETF's top holdings are Nvidia, Apple, and Microsoft.

3. Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND)

VBND ETF brought in $1,499 million in new investment over the first three quarters.

The ETF tracks the Bloomberg Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars.

The ETF provides exposure to high-quality, income-generating bonds issued by governments, government-owned or guaranteed entities, and corporations from around the world.

The investments are predominantly rated BBB- or higher by Standard & Poor's or an equivalent ratings agency. 

Vanguard says this ASX ETF suits buy and hold investors who want regular income from a diversified portfolio of fixed interest securities.

4. Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD)

The ASX VGAD attracted $1,136 million in cash flow over the first three quarters.

VGAD is an Australian-hedged version of the VGS ETF, so its returns are relatively unaffected by currency fluctuations.

5. Vanguard Australian Shares High Yield ETF (ASX: VHY)

Aussies invested $1,116 million in ASX VHY over the first three quarters.

VHY is the largest dividend-focused ETF on the market.

It seeks to mirror the FTSE Australia High Dividend Yield Index, investing in 75 companies across all sectors excluding REITs.

VHY ETF's top holdings are currently BHP shares, CBA shares, and National Australia Bank Ltd (ASX: NAB).

ASX VHY has a history of providing strong dividend income and impressive capital gains over the long term.

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Vanguard Msci Index International Shares ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and PolyNovo. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nvidia, PolyNovo, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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